Media Begins to Sniff Out the Truth Behind FedEx Campaign

Discussion in 'UPS Discussions' started by gata, Jun 11, 2009.

  1. gata

    gata New Member

    FedEx's shady new marketing campaign

    It’s a relatively common strategy for companies to try to bring down their competitors. The Apple vs. Microsoft ads that appear frequently on the front page of The New York Times website. The recent Folgers attack on Starbucks’ instant coffee waged on billboards around Chicago.

    On the surface, it’s not so strange for FedEx to launch a new marketing campaign against its competitor UPS. But the way they’re doing it is a little suspect.

    FedEx’s new campaign, in the form of a website called, accuses UPS (brown in color and nickname) of seeking a government bailout. It juxtaposes UPS’ income (over $2.1 trillion) with the definition of bailout (“a rescue from financial distress.”) In fact, according to a recent NY Times article, UPS isn’t seeking anything—it’s actually FedEx who’s trying to get something from the government.

    They’re trying to get the Senate to not pass a law that would reclassify FedEx Express under different federal labor laws, making it easier to form unions. They’re arguing that doing this would hamper their own progress and help their competitor, UPS. However, UPS has been held under these labor laws for years, so they’re already unionized. In fact, it’s FedEx that has been getting the “bailout,” as they call it, all along.

    Watch for a response from the Teamsters union, whose international VP is quoted in the article as saying, “It’s laughable to think that they would portray this as some bailout. This is simply leveling the playing field.”

    The director of communications at FedEx maintains that FedEx and UPS are fundamentally different companies and they shouldn’t be regulated the same, also, “that piece of legislation only helps one company while hurting a main competitor—if that’s not a bailout, we’re going to have to redefine the word.”
  2. feederfrankie

    feederfrankie New Member

    Love what hall said: "Laughable." Good stuff. This whole thing is backfiring on those guys. In fact, I don't think this could have worked out any better for US. People aren't stupid.

    You reap what you sow, Freddie. You reap what you sow.
  3. TechGrrl

    TechGrrl Space Cadet

    Both UPS and the Teamsters, along with the rest of the labor movement, need to ridicule and call out FredEx. Freddie has been freeloading every since FedEx Ground started. He is the most anti-worker guy out there. If we don't aggressively respond to this, it will be a shame.
  4. bbsam

    bbsam Moderator Staff Member

    well, maybe ups could get themselves covered under the rla. they should have tried when they got into the express market. you know, maybe evolve the business model
  5. Monkey Butt

    Monkey Butt Dark Prince of Double Standards Staff Member

    Maybe UPS understood the inherent advantages of an integrated network seeing how UPS and FedEx have similar pricing and UPS is more profitable while compensating their employees much better than FedEx.
  6. 1989

    1989 Well-Known Member

    That can't be true. All I hear is how stupid management is. Maybe management is smarter than the teamsters. Laughing all the way to the bank.

    HEFFERNAN Huge Member

    This past Friday, we got a message on our diads that the CEO has taped UPS's response to Fed-Ex's campaign and for us to go on to see the message.


    I had assumed that mainstream media would have picked up on this story but have not seen 1 website with one yet. I'm talking MSNBC, FOXNEWS, CNN. Hopefully, it gets picked up during the week.
  8. UPSGUY72

    UPSGUY72 Well-Known Member

    From what I heard from management UPS doesn't want to get in to a mud throwing match with Fed Ex. They want to direct there efforts directly at the US Senate.
  9. LED

    LED Member

    From the website

    What is this all about?

    This is a story of a 100-year-old trucking company . . .
    • trying to keep up with the competition in today’s need-it-now, around-the-world, around-the-clock, just-in-time economy . . .
    • wanting to return to the days when it operated as an unchallenged monopoly and raised prices whenever it wanted . . .
    • now using its political muscle to write its own “Big Brown” Government bailout . . .
    • to force the world’s most efficient airline to operate under trucking rules that have never applied to airlines . . .
    • at the expense of those who depend on America’s next-day commerce system for essential medicines, critical parts and important shipments.
    This Fedex campaign is full of holes. (not that I have to convince anyone on here, just kind of venting a little)

    Fedex and UPS are in the same business. You can send a package through either carrier and have it delivered by a specific time (1 day, 2 days, etc).
    Fedex "the airline" is accusing UPS "the trucking company" of trying to put them out of business. By making these accusations, Fedex is in fact acknowledging that both companies do the same thing.

    I have never seen Delta airlines accuse Greyhound bus line of competing unfairly against them. Both of these companies move people, one by air, the other by ground. The difference is time and money. Since you can send a package by either UPS or Fedex to the same place, in the same amount of time, for the same price, then what is the difference in the business? There is none.

    If Fedex flew packages only from airport to airport, and had the customer drop off and pick them up, then their would be more of an argument for "airline status". Since both companies use planes and trucks to move packages, the argument that one is "just an airline" does not hold water.

    If you believe in the free market and capitalism, then both companies should have to compete under the same rules. Since UPS and Fedex use both airplanes and trucks then the NLRB is the correct classification.
  10. Coldworld

    Coldworld Taking it all back.....

    who are the ones that own that site brownbailout...been gone for a few days and trying to catch up.
  11. Monkey Butt

    Monkey Butt Dark Prince of Double Standards Staff Member

    FredEx my friend ... FredEx.
  12. Coldworld

    Coldworld Taking it all back.....

    Yeah, mgt would rather get in mud slinging match with its employees. This whole thing could really be a positive thing for mgt and employees...maybe a time to mend a fence or two. The sad thing about it is even if ups had 0 competition employees in general would still be treated like crap...that goes for mgt being treated like dogs also!!
  13. Coldworld

    Coldworld Taking it all back.....

    thanks hoax, gone for a few and miss the whole pissing match.
  14. bbsam

    bbsam Moderator Staff Member

    that has always been an interesting point, but one that i think is easily answered. also the large debt that fedex carries. but in a business sense, these are not necessarily bad things. if you ever look at the fedex portion of this web site, you'll notice that every week fed ex is announcing the opening of new facilities or the ground-breaking or securing financing for a new hub. these are sizable capital expenditures that will neccessarily reflect on the balance sheet but will also point to the true aggressive nature in fedex's attempt to grow in market share. it would hard to suggest that ups is remaining just as aggressive in keeping that same market share.
  15. Just Numbers

    Just Numbers Retired

    Debt is debt! Most people don't care what you spent it on....GM had 82 billion of debt on its books. How do you spell bankruptcy.
  16. dannyboy

    dannyboy From the promised LAND


    First off, had UPS been eligible to fall under the railway labor act, dont you think they would have done so? Its not that they didnt, they couldnt.

    Secondly, fedex got into the RLA through a bunch of legal hoodo loopholes. So the fact remains they should never have been able to do so in the first place. But I guess when you pay off the right people miracles can happen.

    As for FEDEX being the only one to open new hubs, expand the business, going aggressively after market share, I think you have a very limited view.

    I would suggest that in most markets UPS and FEdex are equally aggressive, but UPS tries to keep it more low key, whereas fedex makes a lot of noise doing it.

    So while I can appreciate your view, it is a bit one sided.

  17. Ghost in the Darkness

    Ghost in the Darkness Active Member

    Fedex is using bait-&-switch tactics. Advertising one thing and trying to sell another. Anyone with even the slightest intelligence can read what is going on realize Fedex is not making any sense which is why they are trying to get attention with these below the belt attacks. They have already lost and they know it so they are gonna scratch, pull hair, and kick us in the groin on their way down.
  18. FedEX 4 Life

    FedEX 4 Life New Member

    Just remember,FedEx is smarter than UPS.All the mistakes and missed opportunities made by UPS,Fedex quickly capitalized on.
    Fedex still has a few tricks up its sleeve.
  19. bellesotico

    bellesotico BOXstar

    Um. No.
  20. over9five

    over9five Moderator Staff Member

    Fedex made a huge mistake with this 'bailout" campaign.

    They assumed the American public was stupid.